McDonald's Corp. reported a 68% drop in net income for the second quarter ended June 30, the first quarter to show the full impact of the coronavirus pandemic.
CEO Chris Kempczinski pushed the same message he's been stating for weeks during the crisis: the brand's digital and delivery investments have served to help the chain during uncertain times.
“We saw continued improvement in our results throughout the second quarter as markets reopened around the world,” Kempczinski said in a statement released Tuesday before the company's conference call. “I’m especially proud of the way the McDonald’s system
continues to provide a safe environment for both customers and crew, building on our 65 year legacy as a responsible and reliable choice for safe food. We're confident that the strong foundation we’ve built, combined with the unique advantages of our system, position us well to continue operating successfully during this pandemic and emerge even stronger.”
Here are the second quarter highlights. Stay tuned to NRN.com for a more detailed report later this morning after the chain’s conference call with investors.
- U.S. same-store sales decreased 8.7% for the second quarter ended June 30. Results sequentially improved each month throughout the quarter. In June, comps were down 2.3%.
- Average checks remained strong.
- Global same-store sales declined 23.9%.
- Nearly all McDonald’s restaurants around the world are open.
- Guest counts remained negative, particularly at breakfast. The chain has been losing ground in the morning since before the pandemic. McDonald's did not disclose specific data on guest counts. According to foot traffic analytics platform Placer.ai, McDonald’s visits dropped 60% year-over-year in April. "But the brand is recovering quickly with May visits down just 45.9% and June visits down 39.1% year-over-year. McDonald’s positive momentum is bringing it closer to normalcy," according to the firm's smartphone tracking data.
- Net income of $483.8 million was down from $1.52 billion for the same quarter, last year. Most of that is driven by declines in comp sales during the quarter, in addition to one-time expenses such as $200 million in marketing support to help franchisees during the pandemic.
- All day breakfast is still on hold
- About 2,000 dining rooms in the U.S. are open. On Friday, the company extended the pausing of the reopening of dining rooms in the U.S. due to escalating coronavirus cases. The delay has been extended another 30 days.
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